Tegeta dictated business terms to Eskom, commission hears
The inquiry’s Advocate Kate Hofmeyr says a lot of pressure was placed on Eskom to conclude the R4.3 billion business deal with Tegeta within 48 hours.
JOHANNESBURG - The state capture commission has heard how Gupta-owned company Tegeta dictated the terms for a business agreement with Eskom and got the power utility to sign that agreement without financial due diligence.
The inquiry’s Advocate Kate Hofmeyr is leading evidence on the supply of coal by the Tegeta-owned Brakfontein mine.
She says a lot of pressure was placed on Eskom to conclude the R4.3 billion business deal with Tegeta within 48 hours.
The evidence was submitted by former Eskom executive Dr Mark Van Riet who died apparently hours after signing off on his submission to the commission this year.
He was meant to take the stand at the commission and expose the Gupta family’s dealings with the power utility.
Advocate Kate Hofmeyr says that when Eskom concluded an agreement with Tegeta’s Brakfontein mine, there was no financial due diligence done.
"The financial due diligence was in fact completed at the end of April 2015, after the agreement was concluded and coal supply had already commenced. That financial due diligence concluded that Tegeta was 'not financially sound enough to be awarded a contract of this value.'
She says there is evidence that the Gupta-owned company dictated the terms to Eskom.
"Where Tegeta would dictate the terms on which it wanted Eskom to respond to its offers."
He says the technical arm of Eskom complained about the quality of coal from the mine, which Treasury later found was substandard.